In 2021, China, which completely banned cryptocurrencies in the country, the public’s demand for this area does not seem to have decreased much. While it is noteworthy that the weakness in the stock and real estate market has led investors to alternative areas, Chainalysis research showed that the money coming to OTCs in the 3 quarters until June was $75.4 billion.

According to the research of the block chain analysis firm, more than $20 billion entered over-the-counter trading platforms based in China every quarter.

“55% of transactions are $1 million and above…”

There were also interesting details in the research. It was stated that nearly 55% of the inflows received by Chinese OTC platforms consisted of transfers of $1 million and above. It is obvious that some of these transfers come from wealthy people, but some of them are thought to be made by organisations that trade on behalf of small investors. However, it cannot be seen at what rate and to which party the transactions here belong.

“They do not take the bans seriously”

Eric Jardine, an expert on cybercrime at Chainalysis, touched on the lack of serious enforcement of bans in China in his assessment on the subject:

“OTC transactions fall into the grey area in the economy. The fact that these can still attract such a serious amount of money is partly due to Beijing’s failure to seriously enforce the bans. Demand for OTCs will continue to grow in China until crypto bans are completely lifted.”